Applicants filing a 2019-20 FAFSA must use data from their 2017 tax returns.
Why does FAFSA say 2018 and not 2019?
You cannot use your 2019 tax information. We understand that for some families, 2018 income doesn’t accurately reflect your current financial situation. The 2020-21 FAFSA form requires only 2018 tax information.
Does FAFSA use prior year tax returns?
The January 1 FAFSA required families to gather income data from the previous year and either file or estimate income taxes as part of the aid calculation. That’s why families are now able to use “prior-prior year” financial information — actual tax data from their most recent completed filing.
Can you get FAFSA for previous years?
The Free Application for Federal Student Aid (FAFSA) bases income and tax information on a specific year’s federal income tax returns, the prior-prior year. You cannot substitute income and tax information from a more recent year even if the information is available.
How to get tax information for student financial aid?
IRS Offers Help to Students, Families to Get Tax Information for Student Financial Aid Applications. The Internal Revenue Service Data Retrieval Tool (IRS DRT) is available to use with the 2020‒21 FAFSA Form.
How does income affect your child’s financial aid?
The FAFSA also asks about untaxed income, which means that withdrawing from a Roth IRA to pay for college expenses could also reduce your child’s financial aid package, said Mark Kantrowitz, the publisher of the free online admissions tool Cappex. You child’s income is considered, too, and is weighted more heavily than the parents’ income.
Is the IRS DRT available for FAFSA form?
Additional security and privacy protections have been added to address concerns that data from the tool could be used by identity thieves to file fraudulent tax returns. The IRS DRT remains the fastest, most accurate way to input your tax return information into the FAFSA form. Tax Transcripts are only available online.
What do you need to know about FAFSA for 2016?
If your finances changed drastically in 2016, you still need to provide 2015 tax information on the FAFSA but should contact the financial aid office at the school to let them know. Colleges look at your Adjusted Gross Income, which includes more than the wages you earned.
